19 Mar Kwabena Duffuor, Kofi Amoabeng petition Parliament over revocation of their banking licenses
19 March 2021
A former Finance Minister Dr Kwabena Duffuor and the former CEO of UT Bank have petitioned Parliament over the Bank of Ghana (BoG)’s revocation of their banking license.
In a statement set for discussion in the House on Monday, March 22, sighted by Joy News, the former Governor of the central bank petitioned the Legislature to investigate the conduct of BoG in the takeover.
Mr Duffuor also wants an inquiry into the appointment of an Official Administrator of Unibank Ghana Limited as well as the circumstances surrounding the revocation of the bank’s license in 2018.
He is also asking Parliament to direct the restoration of the banking license of Unibank Ghana Limited by BoG and remedying the harms done to the shareholders’ property rights as a result of the conduct of the central bank.
Dr Duffuor, the founder of Unibank in 1997 at a time when he was BoG Governor, also wants Parliament to give any other directives it deems fit.
The bank was put into administration by the BoG in 2018 and then consolidated with four other defunct banks during Ghana’s banking crisis.
At the time of its administration, the bank was led by his son Dr Kwabena Duffuor Jr.
In taking over the bank, the BoG cited weak supervisory standards, weak operations and persistent liquidity shortfalls and breaches in its cash reserve requirements as reasons for taking over the bank.
On his part, the former UT Bank boss, Prince Kofi Amoabeng has petitioned the Legislature to conduct an investigation of the conduct of the central bank and Ghana Stock Exchange (GSE) for the revocation of UT Bank’s license and delisting the bank without due regard to the rules of Administration Justice guaranteed under Article 23 of the 1992 Constitution.
The disgruntled CEO also Parliament to direct the restoration of his bank’s license and the remedying of the harms done to the shareholder’s property right as a result of the conduct of the BoG.
Mr Kofi Amoabeng also wants Parliament to give other directives it deems fit.
He is being accused by the state of mishandling depositors’ cash by engaging in fictitious and unlawful activities which led to the collapse of UT Bank in 2017.
The central bank revoked the license of UT bank and approved a takeover of its assets and liabilities by state-owned GCB Bank.
Since then, Prince Kofi Amoabeng has been the subject of police investigations.
Meanwhile, Majority Leader, Osei Kyei Mensah Bonsu said “the two matters are before the court and they [Dr Duffuor and Mr Prince Amoabeng] have been directed to amicably resolve the matter with BoG.”
He said Parliament doesn’t want to be on a warpath with the judiciary so he cannot understand why they matter has been brought before the House.
The Suame MP said the Speaker shouldn’t have admitted the motion to be discussed.
“I would have wished the Speaker waited for the court to handle the case. It is not as if it is now going to the court, and in any case if we come to such a determination how do we enforce it if the matter is in court,” he said.